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NCM - Newcrest Mining News Story

A$30.58 0.8  2.6%

Last Trade - 29/05/20

Sector
Basic Materials
Size
Large Cap
Market Cap £12.64bn
Enterprise Value £13.79bn
Revenue £3.09bn
Position in Universe 19th / 1842

Newcrest follows Rio Tinto in joint venture with Australian gold junior

Fri 28th February, 2020 4:25am
By Melanie Burton
    MELBOURNE, Feb 28 (Reuters) - Gold explorer Antipa Minerals
Ltd  AZY.AX  on Friday said it has formed a joint venture with
Newcrest Mining Ltd  NCM.AX  in Western Australia's
copper-and-gold hot spot, where Rio Tinto Ltd  RIO.AX  said it
made a major find in 2018.
    Newcrest has signed a deal to spend as much as A$60 million
($39.58 million) to jointly explore the southern part of
Antipa's lease in the Paterson province, adjacent to Newcrest's
large ore processing plant and aging Telfur gold mine.     
    The spend could hand Newcrest up to a 75% stake in the
venture - dubbed the Wilki Project - if it meets developmental
targets over the next eight years. Newcrest has also spent A$3.9
million on a 9.9% stake in the gold miner, Antipa said in a
statement.
    Lying east of the better-known Pilbara iron ore region, the
Paterson province has long been recognised as an area
prospective for copper and gold. However, sandy soil and the
remote desert location have made exploration both difficult and
expensive.
    It shot to global prominance 18 months ago with news of a
huge copper and gold find by Rio Tinto, which the major named
Winu. Rio has yet to detail the scale of the find, but Chief
Executive Jean-Sebastien Jacques said this week that first
production could come as soon as 2023.  urn:newsml:reuters.com:*:nL3N2AQ1HV
    "It's a fairly unexplored province because the deposits are
buried under desert sands full of snakes and camels," said
analyst James Wilson of broker Argonaut in Perth.  
    "It's frontier country up there and it's hard to explore and
it costs a lot of money which is usually an arena reserved for
big companies. Antipa has the lion's share of the ground
position."
    Renewed interest has also come as miners have increased
exploration spending following a commodity price recovery and as
technological advances have opened the region's potential.
    Antipa also holds ground next door to Winu in its northern
Citadel project, for which Rio agreed last month to raise its
stake to 65% for $14 million over five years. 
    Shares in Antipa surged as much as 36% on Friday before
trimming gains to 27% at $A0.014.  
    Both majors have other joint ventures in the region.
Newcrest has an agreement with Greatland Gold PLC  GGPL.L  for
its Havieron gold-copper project, while Rio has deals including
with Sipa Resources Ltd  SRI.AX  and Carawine Resources Ltd
 CWX.AX .  urn:newsml:reuters.com:*:nFWN27B090
    Fortescue Metals Group Ltd  FMG.AX  as well as IGO Ltd
 IGO.AX  through explorer Encounter Resources Ltd  ENR.AX  are
also active in the area.  

($1 = 1.5161 Australian dollars)

 (Reporting by Melanie Burton; Editing by Christopher Cushing)
 ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals;
+613 9286 1421; Reuters Messaging:
melanie.burton.thomsonreuters.com@reuters.net))
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